In an unprecedented move, Saudi Arabia has reportedly inaugurated its first alcohol store in the diplomatic quarter of Riyadh, as per two sources who spoke to CNBC.
This development, yet to be officially confirmed by the Saudi government, signifies a significant shift for the deeply conservative Muslim nation where alcohol has been prohibited since 1952.
The store's regulations, as viewed by CNBC, stipulate that only non-Muslim diplomats can gain access, with authorization confirmed via an application named Diplo. The rules also prohibit guests or individuals below 21 years from accompanying authorized visitors. Photography is strictly forbidden, and mobile phones must be secured in "mobile pouches" to prevent usage within the store. Additionally, purchases are regulated by a monthly quota system for each registered individual.
Speculations have been rife for years that the Gulf kingdom, renowned for its ultraconservative laws, would eventually permit alcohol outside foreign embassies. This move is seen as part of a broader initiative to liberalize Saudi society and attract more international tourists and expatriates. A Saudi consultant close to the royal court, who requested anonymity due to the sensitivity of the topic, told CNBC that the establishment of a shop in the diplomatic quarter is a minor stride in that direction.
The consultant stated, "It's a baby step to opening up alcohol sales to non-Muslims in Saudi Arabia eventually, to hotels and other venues." They further added that a primary objective is "to deal with the smuggling problem that we've always had with diplomats." It is known that foreign embassy staff, who can import alcohol for embassy premises, often import large quantities and sell it on the black market.
A Western diplomat based in Riyadh, who also requested anonymity due to professional restrictions, confirmed that their colleagues had already visited the store and found it "extremely well stocked."
CNBC has reached out to Saudi Arabia's ministries of media and foreign affairs for comments.
Saudi Arabia has witnessed significant social and economic transformations since Crown Prince Mohammed bin Salman, the kingdom's de-facto ruler, assumed power. His ambitious project, Vision 2030, is a multitrillion-dollar initiative aimed at reshaping the Gulf country's image, promoting tourism, and diversifying its economy away from oil.
Since the Crown Prince's ascension to power, the kingdom has implemented a series of liberalizing reforms, including permitting previously banned activities such as women driving, movie theaters, and concerts. However, these reforms have been accompanied by a crackdown on dissent and the imprisonment of political activists.
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